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Carbon Emission Accounting In Mrio Models: The Territory Vs. The Residence Principle

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  • Arkaitz Usubiaga
  • José Acosta-Fernández

Abstract

Consumption-based CO 2 emissions, which are commonly calculated by means of environmentally extended input--output analysis, are gaining wider recognition as a way to complement territorial emission inventories. Although their use has increased significantly in the last years, insufficient attention has been paid to the methodological soundness of the underlying environmental extension. This should follow the internationally agreed accounting rules of the System of Environmental-Economic Accounting, which addresses the activities undertaken by the residents of a country , independent from where these take place. Nonetheless, some footprint calculations use extensions that account for all the activities within the territory , which leads to methodological inconsistencies. Thus, this article introduces the most relevant conceptual differences between these accounting frameworks and shows the magnitude of the gap between them building on the data generated for the EXIOBASE model. It concludes that the differences are high for many countries and their magnitude is increasing over time.

Suggested Citation

  • Arkaitz Usubiaga & José Acosta-Fernández, 2015. "Carbon Emission Accounting In Mrio Models: The Territory Vs. The Residence Principle," Economic Systems Research, Taylor & Francis Journals, vol. 27(4), pages 458-477, December.
  • Handle: RePEc:taf:ecsysr:v:27:y:2015:i:4:p:458-477
    DOI: 10.1080/09535314.2015.1049126
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    Cited by:

    1. Liang, Xuedong & Yang, Xu & Yan, Fuhai & Li, Zhi, 2020. "Exploring global embodied metal flows in international trade based combination of multi-regional input-output analysis and complex network analysis," Resources Policy, Elsevier, vol. 67(C).
    2. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    3. Mitsuo Yamada & Kiyoshi Fujikawa & Yoshito Umeda, 2019. "Scenario input–output analysis on the diffusion of fuel cell vehicles and alternative hydrogen supply systems," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    4. Arkaitz Usubiaga‐Liaño & Paul Behrens & Vassilis Daioglou, 2020. "Energy use in the global food system," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 830-840, August.
    5. Hehua Zhao & Hongwen Chen & Ying Fang & Apei Song, 2022. "Transfer Characteristics of Embodied Carbon Emissions in Export Trade—Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    6. Gilang Hardadi & Alexander Buchholz & Stefan Pauliuk, 2021. "Implications of the distribution of German household environmental footprints across income groups for integrating environmental and social policy design," Journal of Industrial Ecology, Yale University, vol. 25(1), pages 95-113, February.
    7. Wood, Richard & Neuhoff, Karsten & Moran, Dan & Simas, Moana & Grubb, Michael & Stadler, Konstantin, 2020. "The structure, drivers and policy implications of the European carbon footprint," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(sup1), pages 39-57.
    8. Jihoon Min & Narasimha D. Rao, 2018. "Estimating Uncertainty in Household Energy Footprints," Journal of Industrial Ecology, Yale University, vol. 22(6), pages 1307-1317, December.
    9. Hanspeter Wieland & Stefan Giljum & Nina Eisenmenger & Dominik Wiedenhofer & Martin Bruckner & Anke Schaffartzik & Anne Owen, 2020. "Supply versus use designs of environmental extensions in input–output analysis: Conceptual and empirical implications for the case of energy," Journal of Industrial Ecology, Yale University, vol. 24(3), pages 548-563, June.
    10. Ivanova, Diana & Büchs, Milena, 2022. "Implications of shrinking household sizes for meeting the 1.5 °C climate targets," Ecological Economics, Elsevier, vol. 202(C).
    11. Jing Li & Hong Fang & Siran Fang & Zhiming Zhang & Pengyuan Zhang, 2021. "Embodied Energy Use in China’s Transportation Sector: A Multi-Regional Input–Output Analysis," IJERPH, MDPI, vol. 18(15), pages 1-18, July.
    12. Barbara Plank & Nina Eisenmenger & Anke Schaffartzik, 2021. "Do material efficiency improvements backfire?: Insights from an index decomposition analysis about the link between CO2 emissions and material use for Austria," Journal of Industrial Ecology, Yale University, vol. 25(2), pages 511-522, April.
    13. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).
    14. Wang, Hanjie & Yu, Xiaohua, 2023. "Carbon dioxide emission typology and policy implications: Evidence from machine learning," China Economic Review, Elsevier, vol. 78(C).
    15. Diana Ivanova & Milena Büchs, 2020. "Household Sharing for Carbon and Energy Reductions: The Case of EU Countries," Energies, MDPI, vol. 13(8), pages 1-28, April.
    16. Owen, Anne & Brockway, Paul & Brand-Correa, Lina & Bunse, Lukas & Sakai, Marco & Barrett, John, 2017. "Energy consumption-based accounts: A comparison of results using different energy extension vectors," Applied Energy, Elsevier, vol. 190(C), pages 464-473.
    17. Zhang, Zengkai & Zhu, Kunfu & Hewings, Geoffrey J.D., 2017. "A multi-regional input–output analysis of the pollution haven hypothesis from the perspective of global production fragmentation," Energy Economics, Elsevier, vol. 64(C), pages 13-23.

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